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Tech Giant X Faces French Raid, UK Probe as Musk Consolidates AI Interests
Elon Musk's tech company X (formerly Twitter) faced scrutiny on multiple fronts as French authorities raided its Paris offices and the UK launched an investigation into its AI tool, Grok. Simultaneously, Musk consolidated his business interests by merging his AI startup xAI with SpaceX, creating what is reportedly the world's most valuable private company.
The raid on X's French offices was conducted by the Paris prosecutor's cyber-crime unit as part of an investigation into suspected offenses, including unlawful data extraction and complicity in the possession of child pornography, according to the BBC. The prosecutor's office also summoned Musk and former X CEO Linda Yaccarino to appear at hearings in April. Musk responded to the raid on X, stating it was a "political attack." The company issued a statement but the contents were not disclosed.
Separately, the UK's Information Commissioner's Office (ICO) announced a probe into Grok, X's AI tool, over its "potential to produce harmful sexualised image and video content," the BBC reported.
In other news, Musk's SpaceX acquired xAI, the company known for the Grok chatbot. SpaceX confirmed the deal by posting a memo from Musk on its website, according to the BBC. While terms of the deal were not disclosed, a source familiar with the matter told the BBC that the merger valued xAI at $125 billion and SpaceX at $1 trillion. Musk stated in his memo that the combination would form an "innovation engine" putting AI, rockets, space-based internet, and media under one roof.
In other tech news, China has banned hidden door handles on electric vehicles (EVs) over safety concerns, making it the first country to stop the use of the controversial designs, according to the BBC. The new regulations, set to take effect on January 1, 2027, require cars to have a mechanical release both on the inside and outside of their doors. The decision follows scrutiny of EVs by safety watchdogs after deadly incidents, including two fatal crashes in China involving Xiaomi EVs where power failures were suspected of preventing doors from being opened.
Meanwhile, Netflix and Warner Bros. Discovery faced a skeptical US Senate antitrust subcommittee regarding their proposed $82 billion merger. Members raised concerns about reduced competition, potential price rises, and the future of cinemas if the deal proceeds, according to the BBC. The deal is currently under review by the Department of Justice (DoJ).
In other company news, Pinterest sacked two engineers for tracking which workers lost their jobs in a recent round of layoffs, the BBC reported. The company recently announced job cuts, with CEO Bill Ready stating in an email he was "doubling down on an AI-forward approach." Pinterest told investors the move would impact about 15% of the workforce, or roughly 700 roles. The two engineers wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees.
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